Invesco (IVZ) February AUM Down on Outflows & Unfavorable FX

Invesco Ltd.IVZ reported preliminary month-end assets under management (AUM) of $945.4 billion for February 2018. The figure reflects a decline of 2.8% from the prior month.

While higher money market AUM supported growth to some extent, the decrease in total AUM was due to unfavorable market returns, fee-earning AUM outflows and net long-term outflows. Also, FX decreased February AUM by $5.1 billion.

Invesco’s preliminary average total AUM for the quarter through Feb 28 was $954.4 billion while preliminary average active AUM was $750.4 billion.

At the end of the reported month, Invesco’s Equity AUM declined 4.6% from the prior month to $432.3 billion. Further, Fixed Income AUM of $226 billion decreased marginally from the January 2018 level.

Balanced AUM was $58.5 billion, falling 3% from the prior month. Also, Alternatives AUM decreased 2% from the preceding month to $145.3 billion. However, Money Market AUM was $83.3 billion, increasing slightly from the last month.

While the company has been witnessing continuous growth in AUM over the last few years, supporting revenue growth, an overall challenging operating environment seems to be weighing on investors’ mind at present. Past year, shares of Invesco gained 9.3%, underperforming the industry’s rally of 25.2%.

Apart from Invesco, Franklin Resources, Inc. BEN declared preliminary AUM of $744.9 billion by its subsidiaries for February 2018, reflecting a decline of 3.4% from the prior month.

Also, Legg Mason, Inc. LM reported fall in AUM, as of Feb 28, 2018, compared with the prior month. Preliminary month-end AUM came in at $766.7 billion, down 1.7% from January 2018.

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